Addu City named first SME zone, with tax and rent breaks for three years

President Dr Mohamed Muizzu announced last night that Addu City will be the first zone under a policy that divides the country into zones and gives small and medium enterprises (SMEs) special concessions. He made the announcement in his speech at the opening of Maldives Expo 2026.

The concessions start on 1 January 2027 and run for three years. They apply to SMEs that are physically established and operating in Addu City. The decision was also noted in a presidential statement.

Businesses in Addu will get the following:

• Full waiver of rent on government or state land leased for the business

• Exemption from Business Profit Tax (BPT) and income tax

• Large concessions on the foreign worker quota and annual fee

• Waiver of the annual fee on vessels imported for the business

The President said the main aim is to grow Addu City’s economy and create more jobs. He added that the government also wants businesses in Addu to expand and residents’ incomes to rise.

He said the Ministry of Economic Development will announce further details in the coming days.